Detjen Enterprises, Inc., 101420 WIWC, S1900053MW

Case DateOctober 14, 2020
CourtWisconsin
DETJEN ENTERPRISES, INC. d/b/a SHERM’S PIGGLY WIGGLY Employer
No. S1900053MW
Wisconsin Workers Compensation
State of Wisconsin Labor and Industry Review Commission
October 14, 2020
         UNEMPLOYMENT INSURANCE CONTRIBUTION LIABILITY DECISION1           Michael H. Gillick, Chairperson          The commission modifies and affirms the appeal tribunal decision. Accordingly, Detjen’s Enterprises, Inc. is an optional successor to the unemployment reserve account of P&G, Inc.          By the Commission:           David B. Falstad, Commissioner, Georgia E. Maxwell, Commissioner          Procedural Posture          This case is before the commission to determine whether the employer, Detjen Enterprises, Inc., d/b/a Sherm’s Piggly Wiggly (“Detjen” or “transferee”), is an optional successor to the unemployment insurance (UI) reserve account of P&G, Inc., f/d/b/a Sherm’s Piggly Wiggly (“P&G” or “transferor”). An administrative law judge (ALJ) of the Unemployment Insurance Division of the Department of Workforce Development held a hearing and issued a decision. The commission received a timely petition for commission review. The commission has considered the petition and the positions of the parties, and it has reviewed the evidence submitted at the hearing.          Findings of Fact and Conclusion of Law          1. Piggly Wiggly Midwest, LLC (“PWM”) is the agent and provider of franchise, accounting, and administrative filing services for about 90 Piggly Wiggly grocery stores, including Detjen and P&G.          2. Detjen has been doing business as a Piggly Wiggly franchisee in Randolph, Wisconsin since 2004.          3. On April 22, 2018, Detjen acquired the Piggly Wiggly store in Princeton, Wisconsin from P&G, including all of its employees. PWM helped facilitate the acquisition and was responsible for all of the associated paperwork.          4. It was the expectation of the parties that Detjen would be the successor of P&G.          5. Based on the date of acquisition, April 22, 2018, the application for transfer of the UI account and designation of successor was to have been completed by filing a Report of Business Transfer (Form UCT 115-E) by October 31, 2018. PWM did not file the report by the deadline.          6. The manager of PWM’s accounting department had worked for PWM for 40 years. Although his department provided assistance to Piggly Wiggly franchisees when buying or selling stores, it was rare for a transferee with one or more existing stores to use an existing legal entity to acquire a new store (and its UI account).          7. With most acquisitions, a new legal entity is created for the acquired store (the transferee), and that entity opens a new UI account. The department then sends a Report of Business Transfer form to the new entity to complete and, if desired, to apply to acquire the account experience of the transferor.          8. Detjen had a UI account for the Randolph Piggly Wiggly store when it acquired the Princeton Piggly Wiggly store from P&G. Rather than establish a new legal entity for the Princeton store, Detjen brought the acquired store into its existing business. Because Detjen did not need to establish a new UI account, a Report of Business Transfer form was not sent to PWM to complete on behalf of P&G.          9. During the four-year period prior to its sale to Detjen, P&G had not had any employees file claims for UI benefits. The same was true for Detjen.          10. PWM did not receive from the department any notices of unemployment claims having...

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